As an intermediary mechanism, the monetary system buys primary securities and creates money; Non-monetary intermediaries only play an intermediary role, buying primary securities and creating monetary claims against themselves in the form of savings deposits, stocks, common stocks and other bonds.
The first information asymmetry is that entrepreneurs have information advantages over other investors, and other investors need to spend some resources to obtain information.
Another kind of asymmetric information is about the realized profits of investment projects. Entrepreneurs can easily understand the profits of investment projects, while other investors need to spend some time and money. He believes that expensive information products are typical cases of market failure. When the investment level related to economic development greatly exceeds the savings of any investor, market failure is manifested as repeated production of information or no investment.
Obviously, it is a waste to produce information repeatedly, because when individuals produce information, it presents the characteristics of public wealth. Information production is technically professional, which makes some individuals become agents of other investors. They produce information and get paid. There are inherent problems with this arrangement. Agents become financial intermediaries, how can investors ensure that their information transfer agents do their best? This problem will be solved. This diversified financial intermediary can raise funds from public investors. Under this contract structure, the remuneration of financial intermediaries depends on the accuracy of information production, thus solving the above moral problems. Therefore, Hans Weikander believes that due to the incompleteness of the capital market and the asymmetry of information, "spontaneous financial intermediary is produced by saving the cost of pre-project evaluation."